KeySpan Energy Delivery, which includes Brooklyn Union Gas and anumber of other company affiliates, has reached a proposedagreement with New York officials aimed at restructuring the ratesand services for its natural gas customers in the state.

A key provision of the agreement, which would take effect Jan. 1for a six-month period, seeks to offer customers a one-time creditto reduce their bills in the event gas costs are “abnormally high”this winter.

For KeySpan’s New York City customers, the company has proposeda credit of $25 per customer. But it would offer a credit rangingfrom $25 to $50 for its Long Island gas consumers. KeSpan Energydelivers gas to 2.5 million customers in New York City, Long Islandand in parts of Massachusetts and New Hampshire.

The New York Public Service Commission has asked the public tocomment on the proposed agreement by Nov. 30. The deal is subjectto final approval by the state commission.

In addition to the one-time credits, KeySpan proposes to offercompeting independent marketers that serve former KeySpan salescustomers rebates equal to 8% of the delivery service chargesincurred by these firm customers. The rebates would be in effectthroughout the term of the proposed agreement, which would end June30, 2001.

The bill credits and marketer rebates would be funded by a newlate payment charge on KeySpan’s Long Island customers and fromother sources, such as property-tax reductions, merger-relatedefficiencies and savings from a new meter testing program,according to the company.

Columbia Gulf to Build Lateral to Entergy Plants

Columbia Gulf Transmission has proposed to build a 37-mile,20-inch-diameter pipeline lateral that would run from its mainlinein Richland Parish, LA, to interconnect with two Entergy-ownedpower plants in Warren County, MS, just south of Vicksburg.

The $20 million Vicksburg Lateral would transport 285 MMcf/d,with up to 200 MMcf/d going to Entergy Mississippi Inc.’s 1,300 MWBaxter Wilson plant, and up to 85 MMcf/d to the company’sunregulated Entergy Wholesale Operations’ 300 MW Warren Powerproject which is currently under construction. The Warren Powerplant is scheduled to be in commercial operation by the summer of2001.

“These new interconnections increase the number of powergeneration plants Columbia Gulf serves to nine and the total amountof potential peak day deliverability to more than 1 Bcf/d,” saidJim Hart, Columbia Gulf vice president of marketing. “This isespecially significant when you consider that only four years agowe didn’t serve a single power generation customer.”Construction isset to begin Jan. 1, with an in-service date in May.

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